Optimal Forex Trading Times - When It Is Really Recommended To Be Active In Currency Exchanges?

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Optimal Forex Trading Times - When It Is Really Recommended To Be Active In Currency Exchanges?

So what are the ideal foreign exchange trading times? The forex market is open day and night throughout the business week, but this does not automatically mean that all of those 24 hours are beneficial for trading activity. There is significantly more activity on the forex markets at certain times of the day and frequently the most beneficial times to benefit from trading are when the exchanges are most active.

The two most important exchanges for currencies are London and the US markets. Although the UK does not use the euro, most eurozone lands are within 1 hour time deviation from the UK, as is Switzerland. US time zones also normally include Canada. Therefore the London session and the US session between them include most of the key currencies that are traded.

The London session starts at 8 a.m. UTC and ends at 4 p.m. UTC. The forex crosses that are most busily traded during this session are the Euro, British Pound and US Dollar which is involved in the vast majority of all deals.

The US trading gets started at 1 p.m. UTC (8.00 EST) and finishes at 10 p.m. UTC (17.00 EST). The primarily traded forex pairs during these times involve USD, the Euro, GBP, AUD, the Japanese Yen and the Canadian Dollar.

The most active exchanging time, as you would assume, is during the 3 hours when these two sessions overlap and the exchanges are active in both the UK and the US. This time overlap runs from 1 p.m. to 16.00 UTC (8.00 to 11 a.m. EST).

If you like to let your orders run over several days it would not make that much difference to you being aware of the busiest periods on the exchanges. But if you are involved in day trading forex where you may open and close a trade within a few minutes, you will find most opportunities popping up within the busiest hours.

If you are trading a currency cross, i.e. a currency pair that does not involve the USD, you may have another window of time when the financial markets in both countries are open for trading.

For instance if you were trading AUD/JPY you could find that market activity was sufficiently active during what is called the Asian session. The Australian and Japanese business hours are rather close and on a day when activity was anticipated you might find some winning trades within the overlap. However, typically this is a not so active trading time for most currencies.

So the most beneficial time for most foreign exchange traders is during that 3 hour window in the morning in the United States and the afternoon in the United Kingdom and Europe, when the exchanges are most active on both sides of the Atlantic. Trading can be frenzied during those hours, there is maximum liquidity and the currencies swing far and fast. A lot of the important economic news is broadcasted during this period too, mainly toward the beginning. So these hours are the most beneficial currency trading times if you want to seize quick profits.

Whatever the time zone you are trading in, you need to have a profitable forex trading system. If you don't have an own strategy, use forex signals from an accurate forex signal provider. This way you can make profits in any markets and any time.

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